Premier Inn Marketing Strategies: A Comprehensive Report

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MARKETING
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Contents
Introduction.................................................................................................................................................3
TASK 1.......................................................................................................................................................4
i) Discuss concepts of marketing for the hotel industry (1.1)..................................................................4
ii) Assess the relevance of consumer markets in the same industry (1.3)................................................6
iii) Discuss the rationale of market segmentation for business organizations (1.4)..................................7
TASK 2.......................................................................................................................................................9
i) Assess the importance of elements of the marketing mix to the hotel industry (2.1)............................9
ii) Analyze the pricing strategies and policies about the same industry (2.2)........................................11
iii) Discuss the relevance of market research to services industry operations (4.1)...............................12
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15
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Introduction
Marketing is one of the essential parts of the service industry. The hotels, leisure, hospitality,
travel & tourism etc. all are service industries which provide service to their customers to satisfy
their needs and enhance the organization's growth. The marketing is generally done to promote
the particular service or product which the organization is going to provide to the customers. The
marketing is usually done to attract customers and enhance the growth of the organization. The
following case study of Premier Inn has been selected to elaborate on all the aspects of the
service industry and the necessity of marketing in the service industry. The Premier Inn is needed
to develop plans for the proper marketing of the products. The concepts of marketing in the hotel
industry is needed to be evaluated and the segmentation of the business organizations. The
training procedure of the organization, the methodology of implementing new business
techniques for the Premier Inn is elaborately explained using the following report.
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TASK 1
Introduction
Marketing is very essential in the hotel industry and the Premier Inn is very much required to
discuss the concepts of marketing for the industry because Premier Inn has been among the great
hotel chains and needs to develop the business in order to globalize the business. The marketing
processes of the hotel industry are very essential to be developed in order to develop the
organization and produce better results for the organization.
i) Discuss concepts of marketing for the hotel industry (1.1)
In any industry the marketing is essential for building a brand name for the organization,
attracting the customers and maintaining them. The process of marketing starts from the analysis
of the customer needs in that area, or so and then the target audience is approached by the
organization to sell their product. In the hospitality or hotel industry is very much different from
other service-oriented organizations, the hospitality organizations are needed to maintain the
consistent brand name to sell the service and attract the most number of customers towards the
function of the organization (Schuckert, et. al., 2015).
The organizations opt for various ways to attract customers and increase the business of the
organization. The hospitality organizations conduct surveys from the existing guests as well as
the customer reviews in order to implement the best possible way to resolve any issue which
could lead to decrease the amount of profit and work on them in order to solve the problems and
the organization could earn the most amount of gain (Minazzi, 2015).
The most crucial step which is the most opted tool is the advertisement for the service which the
organization is providing to its customers. Because if the customers won't know about the service
which the organization is producing then it would be very much difficult for the organization to
sell the particular services and that is why it is essential for the organization to advertise their
service with high intensity so that they could quickly grab the attention of the customers and
make them purchase the service.
One of the most used strategies for essential marketing is the promotion of the service that the
organization is going to provide. The proper development of the product is crucial as well as the
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new strategy nowadays is the value-added services that the organizations use to attract the
customers towards the services of the organization. Another critical factor for the organization to
maintain good relationships with the existing customers so that the customers could refer their
friends and family members, as well as the customers, could use the facilities by themselves too
and provide practical help to the organization (Thakran, et. al., 2013).
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ii) Assess the relevance of consumer markets in the same industry (1.3)
The consumer markets are developed by the organizations for the general audiences or customers
which are designed in such a way that they become a customer-oriented market (Gustavo, 2013).
In the service sector, it is a very long time process which every organization use to grab the
market and earn a very decent amount of profit form the market. The consumer orientation, the
value and satisfaction and the customer orientation are a few essential parts that every
organization performs to achieve the desired results and gain the maximum amount of profit
form the market. There are a few ways which evaluate the relevance of the consumer market in
the hospitality industry; they are:
 Long-term relationship: The long term relationship is essential for the service-oriented
organization to maintain with the customers to be emotionally connected with the
customers as well as the customer's connections with any brand would lead the
organization to continue their on-going business without any obstacle and also would
help in gaining profits.
 Value and satisfaction: This is what is the most essential thing that is needed to be taken
care of because every organization should try to please the customer with the service in
such a way that the amount of money the customer invested on the service should satisfy
the customer and the consumer’s expectation should be exceeded so that the organization
could retain the customers and earn profit from the business (Atwal, et. al., 2017).
 To achieve the business goals, it is essential for the organization to have proper
orientation of the customers. The appropriate achievement of the business goals and the
generation of the profit can only be achieved if the organization develops customer based
services, as well as the whole production, is on the satisfaction of the customers.
 The most crucial role of the organization is the decision making because the organization
always gives it the utmost importance that is the type of investment and the requirement
of the customer is also the part to be observed (Seric, et. al., 2014).
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iii) Discuss the rationale of market segmentation for business organizations (1.4)
Market segmentation is the most important basis of many efficient marketing strategies.
According to the behaviour of the customers, it is essential to divide the type and process of
work, and the term segmentation means sharing the customer market based on the kind of
approach the organization does as the organization reacts on the promotion, communication,
pricing and other variables of the marketing mix. The Premier Inn is a hotel enterprise which is
using the concept of segmentation in order to enhance the business of the organization. The
processes of segmentation allow the Premier Inn to target and market to a variety of customers
around the globe with different behavioural approach and provide them the offer to satisfy their
needs and the budget level too. Thus every segment can be addressed with an individual
marketing mix (Dzhandzhugazova, et. al., 2016).
Segmentation is the development of the targeted business or marketing plan. A marketing plan,
which is segment oriented brings the profit for the organization as well as the customers. To
satisfy the needs of the customers with different needs the segmented marketing is essential and
necessary for the organizations as it helps in developing different types of services within the
same product and service range (Hubbard, et. al., 2015).
It is tough to raise the prices of the services and the products at a single time, and it would also
decrease the amount of profit of the organization and thus the segmentation marketing is
beneficial in such cases as the organization always develops the products and services at
different ranges with different facilities that the organization provide to the customers. For
example, if a customer is investing a high amount of money than the organization would give
them premium level services which would allow the customer to purchase products and services
at a high price and there are also products and services of the low estimate for the satisfaction of
the required section of the customers.
The proper segmented marketing allows to the organization to develop the services with variety
in the range of the prices of the services so that the customers would not move and the
organization could earn profit by selling services to the required group of customers.
(Rosenbaum, et. al., 2015).
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In the consumer markets, the investment and the profit all depend on the involvement of the
customers, the higher the level of participation by the customer the higher the amount of profit
could be grabbed The segmentation helps the organization in grabbing the attention of the new
customers with the help of the existing customers by providing them with the services with low
price levels and then give the customers with premium level services after they get satisfied with
the services offered to them at the initial stage
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TASK 2
i) Assess the importance of elements of the marketing mix to the hotel industry (2.1)
The marketing mix is an essential part of the marketing of the services that the organization is
providing. A marketing mix is a tool or technique which every organization uses to gain profit in
the market. The marketing mix is a strategy that every organization uses to compete with the
other organizations and win competitive edge form other organizations and earn the desired
amount of profit from the services provided by the organization.
There are 7 P’s in the market mix for the service industry which are used to evaluate and
assessed in order to enhance the business of the organization.
 Product: The product here is the service which the Premier Inn is providing to its
customers. It is always very essential for any hotel industry to provide quality product for
the customers in order enhance the business of the organization. It is one of the most
essential part of any business because the growth of the business depends on the
satisfaction of the customers.
 Price: The cost and price of the service the organization is providing is very essential to
be low because the customers always get attracted towards those organizations who
provide better services and products at low costs and that is why the Premier Inn has
managed to develop the zip rooms for the customers.
 Place: It is the geographical region where the organization sets up in order to provide the
services to the customer.
 Promotion: It is the most essential part of the marketing mix for an organization, the
advertisement and the promotion of the services are needed to be very efficient so that the
organization could easily grab the attention of the customers and ask for the services.
 Process: It is defined as the steps that the organization takes in order to sell the services to
the customers and the step is not completed in the selling process but it also continues
after the selling (Kandampully, et. al., 2013).
 People: People are the most defining and important factor in the service industries as the
services which are provided are always derived for the customers.
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 Physical evidence: The service is needed to be delivered for deriving the usage of it and
thus the services industries are needed to provide the case studies or the demo’s so that
the customers could easily understand the benefits of the services (Seric, et. al., 2016).
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ii) Analyze the pricing strategies and policies about the same industry (2.2)
Pricing strategies are the strategies which the organization adjusts according to the amount of
profit and the current situation of the organization (Leung, et. al., 2013). The pricing strategy is
essential for the Premier Inn to set the price of the service which the organization is providing
according to the amount investment Premier Inn have. The pricing strategies and the policies of
the Premier Inn are always based on the amount of profit they have gained from the market. The
Premier Inn always try to increase the price of the service which they are providing at that point
of instance when the organization is able to grab the profit at very high amount or if the
organization is needed to invest a very high amount of money for any particular service which
the organization is planning to introduce in the organizational aspects.
Setting the price of a particular service or product is the first step before selling the product but
pricing strategy of Premier Inn is very much different than the regular pricing because the
strategic pricing enables the organization to set the price as per the profit of the organization in
the past times as well as the current situation of the Premier Inn (Gustavo, 2013). The pricing
strategy is generally used for the profit of the organization and the organizations tries to charge
the benefits from the strategic pricing. For the strategic pricing and building advantage from the
pricing, the organizations develop the scope for doing so:
 By implementing the strategic pricing during the seasonal times
 Availability of the product.
 Certainties and uncertainties of the customers and their behaviours of purchasing a
particular product.
 The demand for a particular product and the rigid marketing and availability of the
product.
These are various aspects that are kept in mind while setting the prices of the services by the
organization to avail the amount of profit from the conditional settlements of the organization.
The increase and decrease into the costs of the services are based on the situation of the
organization; the discount and the market segmentation, as well as the margin, pricing and the
selling levels, are maintained and observed during the development of the pricing strategy for the
organization (Minazzi, 2015).
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iii) Discuss the relevance of market research to services industry operations (4.1)
The market research is one of the most essential step that is needed to be taken by every
organization on a daily basis because then it is necessary for the organizations to keep in
remainder about the status of the organizations so that the organization could easily understand
the requirement of the market and gain competitive edge from other organizations and increase
the sales of the organizations. To reach out to the business market and gain profit from the
market and also increase the growth of the organization. To analyze the market trends, target the
best audiences and increase the sales of the organization it is one of the most essential and
necessary steps to be taken from the organizational behalf (kandampully, et. al., 2015). The steps
and techniques used by the Premier Inn for betterment of the organization.
 Analyze the market conditions, problems and the best opportunity for the organization to
develop the best market strategy for the organization and bring profit from it.
 Surveys for the determination of the needs of the customers and using the information for
the development of the services which the organization is going to provide and that too in
time and in a satisfactory way.
 The market research helps the organizations to develop strategies for targeting a
particular audience, and the communication with the customers is increased so that the
organization could easily target the group of viewers for the profitable sales of the
services that the organization is providing (Virginia et al., 2013).
 For the smooth introduction of the new products enhancing the best promotional ways for
the organization so that the services could be easily advertised and the organization could
attract the most amount of the customers towards the services which they provide.
 In the hospitality sector, the market research has been an essential part for the
organization to enhance the market for the organization increase the amount of profit and
also have perfect knowledge of the nature of working of the other organizations (Yoo, et.
al., 2013).
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